Foreign currency in offshore banking units now eligible as collateral for taka loans
However, the facility comes with certain conditions
The Bangladesh Bank has permitted both individuals and companies in the country to secure taka-dominated loans using foreign currency deposits held in Offshore Banking Units as collateral.
The central bank's Foreign Exchange Policy Department issued a circular today (3 July), announcing the decision.
Expatriate Bangladeshis can now also use their foreign currency deposits in Offshore Banking Units as collateral for loans.
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To support financing activities, the Offshore Banking Units may allow foreign currency deposits of non-resident account holders to be used by domestic banking units as collateral for loans to resident individuals, firms, and companies.
However, the facility comes with certain conditions.
A specific request must be made by the account holder, and Offshore Banking Units must verify a genuine relationship between the account holder and the borrower, such as between non-resident Bangladeshis and their local beneficiaries, or between foreign investors and their investee companies.
